Roll your window down, the woman in the passenger seat of the white Gen-V Honda Accord gestures to the driver of a green Nissan Altima. Her male companion shouts from behind the wheel, "How do you like it?" Thumbs up. Which means (A) it's brand-new and the owner has no buyer's remorse or (B) it's a journalist who's going to give it a favorable review. Being that this is summer 2001 in Santa Monica, California, months before the all-new, larger, V-6-optional Altima replaces an also-ran four-banger-only small-midsize model, bet on the latter. "That's going to be my next car," the driver says.

Five years on, nobody makes the universal gesture for "roll your window down" when the 2007 Altima motors around Northern California months before its official on-sale date. Perhaps that guy in the Honda was an anomaly, a midsize-sedan enthusiast. But really, it's just the subtle restyling.

The new Altima has a slightly reworked greenhouse, Nissan's new familial T-shaped grille, bolder Chris Banglesque-profile sheetmetal with Murano-inspired hood and fenders, and more exaggerated taillamps. Styling is sportier thanks to a faster windshield with a more-forward-located A-pillar. The sedan is smaller than the one it replaces, with an 0.9-inch-shorter wheelbase and overall length 2.5 inches trimmer, but it's 0.3 inch wider with more space for the front-seat passengers. Height is the same.

So you'll find few visual clues that the Altima rides on Nissan's all-new "D" platform. The clues are underneath, providing better body rigidity and improved noise, vibration, and harshness. The engine is mounted 1.2 inches lower for a better center of gravity. Front halfshafts are located closer to the ground and at the same angle to virtually eliminate torque steer. The front suspension has a new geometry, and the rear has been reworked for sportier handling. The interior has more padding and chrome, and such optional luxuries as keyless start, real-time navigation, and RearView Monitor camera.

There are auxiliary input jacks for an iPod and other MP3 players and a Bluetooth hands-free phone system option. A 264-watt Bose sound system upgrade has nine speakers and above its controls, the three round climate-control vents look like they come from Mercedes-Benz's most recent designs. Front buckets are comfortable and supportive, especially for long drives, with a longer cushion and higher seatback than the 2006 Altima's, and it's offered with power lumbar support. The rear seat is a bit tight for a car in this class, with marginal headroom for six-footers.

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Like the new Sentra (November), the Altima shows Nissan's acumen in achieving the perfect cost-versus-quality balance, honed on that mid-cycle last-gen Altima update. The interior is impressive to the eye and the touch, but upon close inspection, some parts, like that center cubby cover, look and feel cost-controlled to the fraction of a penny. No cost cutting is apparent under the hood. The 175-horse four-cylinder (170 in California-emissions states) and the VQ35 V-6 feel stronger than their horsepower numbers indicate. Dual exhaust pipes are standard, whatever the engine, and Nissan claims this provides a 50-percent reduction in backpressure for the V-6, 35-percent for the four.

Even more impressive is the continuously variable transmission, the only automatic available. Nissan says it worked mostly on the CVT's software, which adds engine braking, cuts the "rubberband" feel, and improves responsiveness. EPA fuel mileage is up three mpg city and five mpg highway for the 2.5-liter four, to 26 mpg and 34 mpg, respectively. It helps the V-6 achieve 20 and 29 mpg. The CVT transmits fluid power, but unlike other CVTs, it doesn't sap the feel of strong acceleration. If you're a fellow member of the "I'll be in line to buy the last car with a clutch pedal" club, you'll be happy to know you can get a six-speed manual with either engine. The majority of sales will be CVTs, though. We had no seat time in a stick-shift Altima.

The drive filled our notebook with the word "light." Light steering, good feel, and unlike in the Honda Accord, you can handle it with fingertip control. And it's light on its feet. The Altima doesn't launch as if it has a CVT. Under full-throttle acceleration, the tach needle snaps to 6200-rpm attention and waits for the car to catch up. Click the gearshift into the automanual mode, and it doesn't seem any quicker; it just gives you the chance to "feel" stepped gears and hold them to the redline, with only a slight blip up in revs as you change gears. On a twisty road, the manumatic control is quicker, more responsive, and easier to control than most.

The Altima 3.5 SE managed a 6.6-second 0-to-60-mph time, but that's 0.6 second slower than the Toyota Camry SE and 0.3 second slower than the Saturn Aura XR 3.6. It's 0.5 second slower than the Camry through the quarter mile and loses to the Aura by 0.1 second. Wonder if the 6M transmission would affect that.

The four-banger/CVT feels sprightlier than a V-6/CVT Ford Five Hundred, also light on its feet. Four-bangers have traditionally outsold V-6s in the segment by more than three to one, but Nissan soon will have a third powertrain choice. It will be joining the hybrid club in 2007, buying some technology from Toyota. Like the Camry, Accord, and upcoming Aura hybrid, it'll be a four-cylinder engine with electric assist, which could become a popular combo in this segment.

The last Altima handled well for a car in this class. Body roll is moderate, and it understeers predictably, the tires warning you of the limits before you have to worry about them. Buttoned-down midsize cars have their natural advantages, reined mostly by their front drive. Now the Altima has more competition from the new, sportier-handling Camry, which beats it in the Motor Trend figure eight test by 0.5 second.

Nissan intends the Altima to be a bit lighter than the competition. The new Camry SE V-6 has about 100 pounds on the Altima 3.5 SE. It must be insulation--the Altima lets in more road noise, especially on rough surfaces. If you're a gas-tank-half-full kind of midsize customer, you might consider it more tactile. The Altima remains a distinct, desirable car in this class. But if you're looking for a midsize sedan that stands out from its more popular competition, you'll have to settle for a car that doesn't differ much from its predecessor, despite all the changes. Nissan has gone conservative in designing this model on a new platform. If the guy with the white Accord liked his replacement Altima, he might like this one just a bit more--assuming he'll notice it.